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Presented by
      Atul Dwivedi
Kuldeep Ghorpade
    Navneet Yadav
    Vinay Prajapati
  MFTECH, SEM-III
NIFT, Gandhinagar
Name of the Business
  Atul Denims Pvt. Ltd.


Official Address of the Business
  Atul Denims Pvt. Ltd.
  Plot No. 121 Sector C,
  Sitapur Road, Lucknow Industrial Area
  Lucknow-226016
  Phone- 0522- 250314/15/16
  www.atuldenims.com
Ownership Pattern of the Business
  Partnership Firm (Pvt. Ltd.)

Names of the Partners
  Atul Dwivedi
  Kuldeep Ghorpade
  Navneet Yadav
  Vinay Prajapati

Nature of the Business
  Jeans Manufacturing and Distribution
About Us
Vision
  We are ethically run business to provide energy to compete
  the fashion in todays era.


Mission
  Our mission is to provide denim for the next generation
  family, from every walk & stage in life, for every
  occasion, with a wide range of excellent quality that makes
  them look and feel good.
About Us
We will make jeans which will be the straight fit, tight fit and
comfortable fit.
About Us
Low Cost
                        Effectiveness                 Efficiency
                    Doing the right things         Doing things right




                                                                          SHE
Asset Strategy
                    Maintenance                    Plan and
(Availability and                 Work Selection                Execute
                     Strategy                      Schedule
 Performance)




                                                                          Quality
                                                                            Availability
                                  Improve
                                  Monitor
About Us
 ATUL    Value for Money Proposition
Denims
         Ethical Conduct of Business


         To Fill the Product Gap


         Grabbing the Market by Reducing the Lead Time to
         Fill the Product Gap
About Us
         Local Newspaper
Media
Choice   Local Trade Publication


         Local Retail Shops
About Us
                 Distribution
                    & WH
                  (Faizabad)




                   Head
Distribution
                 Quarter &      Distribution
   & WH
                  WH In         & WH (Basti)
(Sultanpur)
                 Lucknow




                 Distribution
                    & WH
                  (Vanarasi)
About Us


                                                                          Distributor in Mumbai & Delhi

Factory in Mumbai & Delhi




                                                                                       Retailer
                                       Local Distributor in U.P.



       Retailer


                                                                   Retailer



                            Retailer
About Us


                                                                          Distributor in Mumbai & Delhi

Factory in Mumbai & Delhi




                                                                                       Retailer
                                       Local Distributor in U.P.



       Retailer


                                                                   Retailer



                            Retailer
About Us



                                                                Retailer
                      Manufacturing & Distribution
                         Atul Denims Pvt. Ltd.


Retailer


                                                     Retailer


           Retailer
About Us
Total Production Per Month: 60,000 Pieces

Number of Working Days: 280/Year

Shifts Per Day of 8 Hour: 1

Operating Efficiency:
   First Year: 30%
   Second Year: 70%
About Us
                          CEO



        GM             GM
                                 GM R&D
      Operation      Marketing


Manager       Manager             R&D
Finance      Production          manager
About Us
   Strong entrepreneurial class
   Flexibility in production of small order lots                 Poor work practices resulting in higher labour cost
   Ability to handle value additions, embellishments              component
    etc.                                                          High transaction and power cost
   Adequate labour supply at relatively competitive              Technological obsolescence and lower efficiencies
    wages                                                         A lack of strong linkages between raw material supplier
   Growing Domestic Market                                        and the apparel manufacturer
                                                                  Few Raw Material Suppliers




   Understanding the customer because of the                     Poor work practices resulting in higher labour cost
    language advantages                                            component
   No other manufacturer in nearby area                          Changing Policies with change in Political Parties
   Reducing the Supply chain can boom this                       Technological obsolescence and lower efficiencies
    business                                                      Daytime Transportation is probhited
   Can enter in Retail Section
About Us
                      Watch & optical
                           7%
Consumer durable
      etc
      3%
                                            Apparel
         Home Décor                          32%
            14%

 Book
  7%


                                              Footwear
               Food                             10%
               20%




                                        Health & Beauty
                                              7%
Denim Consumption in 15 Major Cities in INDIA
Cities                  Million Pieces          Share   Rank
Mumbai                  6.47                    30.1    1
Delhi                   5.65                    26.3    2
Hyderabad               1.53                    7.1     3
Chennai                 1.21                    5.6     4
Lucknow                 1.08                    5.0     5
Bengaluru               1.03                    4.8     6
Kanpur                  1.00                    4.7     7
Kolkata                 0.80                    3.7     8
Nagpur                  0.79                    3.7     9
Ahmedabad               0.64                    3.0     10
Jaipur                  0.63                    2.9     11
Indore                  0.33                    1.5     12
Chandigarh              0.19                    0.9     13
Coimbatore              0.06                    0.3     14
Guwahati                0.05                    0.2     15
About Us
The consumption of 21.46 million pairs of jeans in these 15 cities
accounts for 11.6% of all denim products.
The other denim products are Waist coasts, Shirts, Shorts, Jump
Suits, Skirts, Caps, Jackets, and Shopping bags.

                                Year   Urban         Rural        All India
                                2002   69 (71.13)    28 (28.87)   97
                                2003   98 (73.13)    36 (26.87)   134
                                2004   83 (69.17)    37 (30.83)   120
                                2005   106 (77.37)   31 (22.63)   137
                                2006   116 (75.86)   37 (24.14)   153
                                2007   118 (61.51)   74 (38.49)   192
                                2008   120 (58.59)   85 (41.41)   205
                                2009   122 (55.26)   99 (44.74)   221
About Us
The retail market size for Jeanswear in India
    32.97 billion in value
    63,500 (‘000) pieces

This grew at a relatively healthy rate
   – 7 per cent in value
   – 9.1 per cent in volume over the year 2009.
About Us
• Capacity of India to make denim fabric: 600 million meter
• 79 % denims are tagged with a label
• Domestic market sales: 300 million meter/annum
• Per capita consumption of jeans in India: 0.3/person/annum
• Export of denim: 170 -180 million meter/annum
  Domestic denim consumption: 300 million meter
• At 10% CAGR it grows up to 530 million meter annum by 2015
  for denim fabric
About Us
1. Would you like to keep Denim Jeans          2. Would you like to keep Branded Jeans?
in your stock?
a) Yes 14            35%
                                               a) Yes 14            35%
                                   Yes                                                  Yes
b) No 08                                       b) No 08
                                          No                                            No
                               65%                                              65%




3. Would you like to have a new brand in       4. What quantity do you keep of Jeans in
your stock?                                    your store?              0% 0%
a) Yes 11                                                                 18%                 a) below 500
b) No 11                           Yes
                                               a) below 500    18                             b) 500 -1000
                 50%     50%                                                                  c) 1000-1500
                                     No        b) 500-1000     04                             d) Above 1500
                                                                                  82%
                                               c) 1000-1500    00
                                               d) Above 1500   00
About Us
5. How many brands do you keep in your                       6. What is the Payment terms you prefer?
store?
a) Less then 5                                               a) 30 Day                9%
                      18%
b) 5to 10                  46%   a) less then 5              b) 30 to 60 Day               36%

c) More then 10                  b) 5 to 10                  c) 60 to 90 Day                     a) 30 day
                          36%           c)    more then 10
                                                                                55%              b) 30 to 60 day

                                                                                                             c) 60 to
                                                                                                 90 day



7. What is the highest selling price point?
a) 300 – 500              9%

b) 500 – 700                           a) 300-500

c) 700- 1000           36%    55%
                                       b)500-700
                                             c) 700-1000
About Us
Leading Branded Players
Levi Strauss, Lee, Spyker, Numero
Uno, Trigger, PeterEngland, Reliance, DNMX, Newport, Wrangler,
Live-in, Sprax, Pepe
Non Branded: Approximate 50
Intensity of Competition: High
Major Players in the Industry
Levi Strauss, Lee, Spyker, Numero Uno, Trigger,
PeterEngland, Reliance, DNMX, Newport, Wrangler
Product Option: Trousers (PV and cotton)
About Us
Social: People from Eastern are ready to wear the denim as
work wear and casual wear. There is a paradigm shift from
polyester cotton and its blends to denim among UP youth.
Economical: UP. Youth are having enough discretionary income
for shopping.
Legal: The policies are placed in UP which will bolster the
business environment.
Political: UP government is a stable state government and
promotes indigenous business in UP.
About Us
Legal Restriction
   –   Legal Restriction regarding company formation
   –   Partnership deed
   –   NO of People Involved: minimum 2 and maximum 50
   –   Liability of Business Debts: Unlimited liability. Liability
       extends to the individual’s private property for paying
       business debts.
• The natural resources should be carefully used and the depletion of the
   same should be restricted by the business/ firm.
• The below laws and regulations will help in preserving and careful use of
   natural resources
The Environment (Protection) Act, 1986: It includes below acts
    – Acts relating to Air Pollution
    – Acts relating to Forest Conservation
    – Acts relating to Wildlife Protection
    – Acts relating to Biological Diversity
    – Acts relating to Public Liability Insurance
    – Rules relating to Noise pollution
    – Rules relating to Management of Hazardous Substances
About Us
Laws related with labor
   –   The factories act 1948
   –   Trade union act 1926
   –   Industrial employment act 1946
   –   Industrial Dispute act 1947
   –   The payment of wages act 1936- amendment 2005
   –   The minimum wages act 1948
   –   The payment of bonus act 1965
• The maternity benefit act 1961
• The equal remuneration act, 1976(For women)
• The mines act 1952
• The Dock worker welfare Act 1986
• The Fatal accidents act 1855
• The personal injuries(emergency) provision act 1962
• The personal injuries(Compensation insurance) provision act
  1963
• The public Liability Insurance act 1991
About Us
About Us
1. www.ibef.org
2. Retail Market & Opportunity by Indian Brand Equity Foundation (IBEF)
3. World Denim Market – A Report on Capacities, Market Size, Forecasts etc.
         •   http://www.denimsandjeans.com/latest-denim-reports/denim-data-
             figures/world-denim-market-a-report-on-capacitiesmarket-size-forecasts-etc/
4. www.scribd.com/doc/15021416/Denim-Demand by KSA TECHNOPAK
5. Different Schemes of UP Govt. for SMEs
6. Financial Analysis by Prasanna Chandra
7. Financial Management by Khan & Jain
8. Marketing Management by Philip Kotler
9. Personnel Management by Edwin Philipo
10. State Level Incentives for Industries in Uttar Pradesh
11. An Article on SMEs IN INDIA: ISSUES AND POSSIBILITIES IN TIMES OF
    GLOBALISATION by Keshab Das
Denim Jeans Factory Set Up Planning

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Denim Jeans Factory Set Up Planning

  • 1. Presented by Atul Dwivedi Kuldeep Ghorpade Navneet Yadav Vinay Prajapati MFTECH, SEM-III NIFT, Gandhinagar
  • 2. Name of the Business Atul Denims Pvt. Ltd. Official Address of the Business Atul Denims Pvt. Ltd. Plot No. 121 Sector C, Sitapur Road, Lucknow Industrial Area Lucknow-226016 Phone- 0522- 250314/15/16 www.atuldenims.com
  • 3. Ownership Pattern of the Business Partnership Firm (Pvt. Ltd.) Names of the Partners Atul Dwivedi Kuldeep Ghorpade Navneet Yadav Vinay Prajapati Nature of the Business Jeans Manufacturing and Distribution
  • 4. About Us Vision We are ethically run business to provide energy to compete the fashion in todays era. Mission Our mission is to provide denim for the next generation family, from every walk & stage in life, for every occasion, with a wide range of excellent quality that makes them look and feel good.
  • 5. About Us We will make jeans which will be the straight fit, tight fit and comfortable fit.
  • 7. Low Cost Effectiveness Efficiency Doing the right things Doing things right SHE Asset Strategy Maintenance Plan and (Availability and Work Selection Execute Strategy Schedule Performance) Quality Availability Improve Monitor
  • 8. About Us ATUL Value for Money Proposition Denims Ethical Conduct of Business To Fill the Product Gap Grabbing the Market by Reducing the Lead Time to Fill the Product Gap
  • 9. About Us Local Newspaper Media Choice Local Trade Publication Local Retail Shops
  • 10. About Us Distribution & WH (Faizabad) Head Distribution Quarter & Distribution & WH WH In & WH (Basti) (Sultanpur) Lucknow Distribution & WH (Vanarasi)
  • 11. About Us Distributor in Mumbai & Delhi Factory in Mumbai & Delhi Retailer Local Distributor in U.P. Retailer Retailer Retailer
  • 12. About Us Distributor in Mumbai & Delhi Factory in Mumbai & Delhi Retailer Local Distributor in U.P. Retailer Retailer Retailer
  • 13. About Us Retailer Manufacturing & Distribution Atul Denims Pvt. Ltd. Retailer Retailer Retailer
  • 14. About Us Total Production Per Month: 60,000 Pieces Number of Working Days: 280/Year Shifts Per Day of 8 Hour: 1 Operating Efficiency: First Year: 30% Second Year: 70%
  • 15. About Us CEO GM GM GM R&D Operation Marketing Manager Manager R&D Finance Production manager
  • 16. About Us  Strong entrepreneurial class  Flexibility in production of small order lots  Poor work practices resulting in higher labour cost  Ability to handle value additions, embellishments component etc.  High transaction and power cost  Adequate labour supply at relatively competitive  Technological obsolescence and lower efficiencies wages  A lack of strong linkages between raw material supplier  Growing Domestic Market and the apparel manufacturer  Few Raw Material Suppliers  Understanding the customer because of the  Poor work practices resulting in higher labour cost language advantages component  No other manufacturer in nearby area  Changing Policies with change in Political Parties  Reducing the Supply chain can boom this  Technological obsolescence and lower efficiencies business  Daytime Transportation is probhited  Can enter in Retail Section
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  • 18. About Us Watch & optical 7% Consumer durable etc 3% Apparel Home Décor 32% 14% Book 7% Footwear Food 10% 20% Health & Beauty 7%
  • 19. Denim Consumption in 15 Major Cities in INDIA Cities Million Pieces Share Rank Mumbai 6.47 30.1 1 Delhi 5.65 26.3 2 Hyderabad 1.53 7.1 3 Chennai 1.21 5.6 4 Lucknow 1.08 5.0 5 Bengaluru 1.03 4.8 6 Kanpur 1.00 4.7 7 Kolkata 0.80 3.7 8 Nagpur 0.79 3.7 9 Ahmedabad 0.64 3.0 10 Jaipur 0.63 2.9 11 Indore 0.33 1.5 12 Chandigarh 0.19 0.9 13 Coimbatore 0.06 0.3 14 Guwahati 0.05 0.2 15
  • 20. About Us The consumption of 21.46 million pairs of jeans in these 15 cities accounts for 11.6% of all denim products. The other denim products are Waist coasts, Shirts, Shorts, Jump Suits, Skirts, Caps, Jackets, and Shopping bags. Year Urban Rural All India 2002 69 (71.13) 28 (28.87) 97 2003 98 (73.13) 36 (26.87) 134 2004 83 (69.17) 37 (30.83) 120 2005 106 (77.37) 31 (22.63) 137 2006 116 (75.86) 37 (24.14) 153 2007 118 (61.51) 74 (38.49) 192 2008 120 (58.59) 85 (41.41) 205 2009 122 (55.26) 99 (44.74) 221
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  • 22. About Us The retail market size for Jeanswear in India  32.97 billion in value  63,500 (‘000) pieces This grew at a relatively healthy rate – 7 per cent in value – 9.1 per cent in volume over the year 2009.
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  • 24. About Us • Capacity of India to make denim fabric: 600 million meter • 79 % denims are tagged with a label • Domestic market sales: 300 million meter/annum • Per capita consumption of jeans in India: 0.3/person/annum • Export of denim: 170 -180 million meter/annum Domestic denim consumption: 300 million meter • At 10% CAGR it grows up to 530 million meter annum by 2015 for denim fabric
  • 25. About Us 1. Would you like to keep Denim Jeans 2. Would you like to keep Branded Jeans? in your stock? a) Yes 14 35% a) Yes 14 35% Yes Yes b) No 08 b) No 08 No No 65% 65% 3. Would you like to have a new brand in 4. What quantity do you keep of Jeans in your stock? your store? 0% 0% a) Yes 11 18% a) below 500 b) No 11 Yes a) below 500 18 b) 500 -1000 50% 50% c) 1000-1500 No b) 500-1000 04 d) Above 1500 82% c) 1000-1500 00 d) Above 1500 00
  • 26. About Us 5. How many brands do you keep in your 6. What is the Payment terms you prefer? store? a) Less then 5 a) 30 Day 9% 18% b) 5to 10 46% a) less then 5 b) 30 to 60 Day 36% c) More then 10 b) 5 to 10 c) 60 to 90 Day a) 30 day 36% c) more then 10 55% b) 30 to 60 day c) 60 to 90 day 7. What is the highest selling price point? a) 300 – 500 9% b) 500 – 700 a) 300-500 c) 700- 1000 36% 55% b)500-700 c) 700-1000
  • 27. About Us Leading Branded Players Levi Strauss, Lee, Spyker, Numero Uno, Trigger, PeterEngland, Reliance, DNMX, Newport, Wrangler, Live-in, Sprax, Pepe Non Branded: Approximate 50 Intensity of Competition: High Major Players in the Industry Levi Strauss, Lee, Spyker, Numero Uno, Trigger, PeterEngland, Reliance, DNMX, Newport, Wrangler Product Option: Trousers (PV and cotton)
  • 28. About Us Social: People from Eastern are ready to wear the denim as work wear and casual wear. There is a paradigm shift from polyester cotton and its blends to denim among UP youth. Economical: UP. Youth are having enough discretionary income for shopping. Legal: The policies are placed in UP which will bolster the business environment. Political: UP government is a stable state government and promotes indigenous business in UP.
  • 29. About Us Legal Restriction – Legal Restriction regarding company formation – Partnership deed – NO of People Involved: minimum 2 and maximum 50 – Liability of Business Debts: Unlimited liability. Liability extends to the individual’s private property for paying business debts.
  • 30. • The natural resources should be carefully used and the depletion of the same should be restricted by the business/ firm. • The below laws and regulations will help in preserving and careful use of natural resources The Environment (Protection) Act, 1986: It includes below acts – Acts relating to Air Pollution – Acts relating to Forest Conservation – Acts relating to Wildlife Protection – Acts relating to Biological Diversity – Acts relating to Public Liability Insurance – Rules relating to Noise pollution – Rules relating to Management of Hazardous Substances
  • 31. About Us Laws related with labor – The factories act 1948 – Trade union act 1926 – Industrial employment act 1946 – Industrial Dispute act 1947 – The payment of wages act 1936- amendment 2005 – The minimum wages act 1948 – The payment of bonus act 1965
  • 32. • The maternity benefit act 1961 • The equal remuneration act, 1976(For women) • The mines act 1952 • The Dock worker welfare Act 1986 • The Fatal accidents act 1855 • The personal injuries(emergency) provision act 1962 • The personal injuries(Compensation insurance) provision act 1963 • The public Liability Insurance act 1991
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  • 35. About Us 1. www.ibef.org 2. Retail Market & Opportunity by Indian Brand Equity Foundation (IBEF) 3. World Denim Market – A Report on Capacities, Market Size, Forecasts etc. • http://www.denimsandjeans.com/latest-denim-reports/denim-data- figures/world-denim-market-a-report-on-capacitiesmarket-size-forecasts-etc/ 4. www.scribd.com/doc/15021416/Denim-Demand by KSA TECHNOPAK 5. Different Schemes of UP Govt. for SMEs 6. Financial Analysis by Prasanna Chandra 7. Financial Management by Khan & Jain 8. Marketing Management by Philip Kotler 9. Personnel Management by Edwin Philipo 10. State Level Incentives for Industries in Uttar Pradesh 11. An Article on SMEs IN INDIA: ISSUES AND POSSIBILITIES IN TIMES OF GLOBALISATION by Keshab Das